Consumer lenders Money3 and Thorn Group are getting out of the payday lending market in the face of tighter finance options and a Government review of the sector that has raised the prospect of tougher regulation. The two companies are among the bigger players in the market for small amount credit contracts.Another provider of SACCs, Credit Corp, announced its withdrawal from the market last month.Money3 announced yesterday that its branch and online businesses selling unsecured small amount credit contracts would be shut down by June next year.The company's unsecured loan book is worth about A$50 million.Small amount credit contracts are loans up to $2000 where the term is between 16 days and 12 months. SACCs are covered by a number of separate consumer protection provisions.Money3 chairman Vaughan Webber said in a statement: "While the unsecured business continues to be profitable, the board has determined that the future focus of Money3 should be on the secured segment of the business and related growth opportunities."Webber said the company was working with advisers SLM Corporate to evaluate the options of a sale, demerger or wind down of the unsecured business. He said several interested parties had already registered to receive an information memorandum about the business.Thorn Group chief executive James Marshall said Thorn was in the process of shutting down its small amount credit contract business and would focus its consumer lending division on larger loans.Consumer lending is a small part of Thorn's business, which is dominated by consumer leasing (its Radio Rentals and Rentlo businesses). Consumer lending contributed $430,000 to group EBITA of $34.2 million for the six months to September.Marshall said consumer loan receivables had shrunk by 12 per cent during the September half as the business went through its transition but would be ramped up in the current year.Marshall said he saw good opportunities in the market for bigger consumer loans and the credit quality of the business would improve.Money3 has had an eventful few months, with its chief executive Rob Bryant quitting in July after a disagreement with the board about the future of the company.Two months later Bryant failed in an attempt to force his way onto the company's board and to have several directors, including Webber, removed.In August Westpac announced that it would stop lending to payday lenders. Money3 is a Westpac customer and was given notice that its facility, drawn to around A$10 million, would enter a 12-month run-off in December.The company, which started life as a payday lender, has been diversifying its business for some time.  According to its 2014/15 financial report $94.5 million of its $130.2 million of receivables was in secured loans.New chief executive Scott Baldwin said the secured lending division contributed 64 per cent of the company's profit.The Government review of small amount credit contracts has been asked to look at whether there should be any further regulation of the payday lending sector or change to current regulation, whether the current sanction regime is working and the extent of avoidance practices in